PhonePe Secures SEBI Approval for IPO; Walmart, Microsoft to Sell Stake Through OFS Route

PhonePe, the digital payments platform backed by Walmart, has secured approval from SEBI to proceed with its initial public offering (IPO), marking a key step in launching one of India’s notable fintech listings, as per The Economic Times report.  

The company will raise funds through a complete Offer for Sale (OFS) with shares offloaded by Walmart, Microsoft, and Tiger Global. 

Key Details of PhonePe IPO and Stake Sale 

SEBI has approved PhonePe’s IPO, which will be conducted entirely through an OFS route. The company aims to raise about ₹12,000 crore ($1.5 billion) via this public offer. The offering will not involve the issuance of new shares but will see existing investors like Walmart, Microsoft, and Tiger Global sell part of their holdings. 

This approval follows PhonePe’s last funding round led by General Atlantic in late 2025, which valued the company at $14.5 billion. That was a considerable increase from a $12.5 billion valuation in May 2023, indicating investor confidence in the business's financial and operational standing. 

Dominance in Digital Payments and Expansions 

Founded in December 2015, PhonePe holds a dominant role in India’s digital payments ecosystem. As of its latest data, the platform has 43.5 crore registered users and has onboarded 3.5 crore offline merchants, with services extending to 99% of India’s pin codes.  

In December 2025 alone, PhonePe processed 9.8 billion transactions according to data from the National Payments Corporation of India. 

The company also manages over 45% of all transactions on the Bharat Bill Payment System (BBPS), adding to its influence in the digital utility payments domain. It has been diversifying into financial services since 2017, now offering mutual funds, insurance, and other financial products. 

Read More: PhonePe and Google Pay Lead UPI Ecosystem in December 2025! 

Phonepe’s Financial Performance Ahead of IPO 

In FY 2024-25, PhonePe reported operating revenue of ₹7,115 crore, a 40% increase from ₹5,064 crore in the previous fiscal. The company reduced its net loss by 13.4%, now standing at ₹1,727 crore compared to ₹1,996 crore the year before. This reflects improvement in cost control and stronger monetisation of its growing user and merchant base. 

The IPO will be jointly managed by a consortium of investment banks, including Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley. While the timeline of the IPO will depend on prevailing market sentiments, the regulatory approval provides the green signal for the company to proceed. 

Conclusion 

With SEBI’s approval and a strong performance in the payments and financial services space, PhonePe is set for a significant stock market listing. The ₹12,000 crore IPO, composed solely of an OFS, will allow major investors including Walmart and Microsoft to trim their holdings in the fintech firm. 

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